LCZ696 mortality benefit exceeded what was achieved with enalapril, an
ACE-inhibitor, when replacing enalapril combined with current
treatment regimen for HF-REF1

Study showed significantly more HF-REF patients on LCZ696 regimen were
alive and had fewer hospitalizations than those given enalapril regimen1

Heart failure affects more than 600,000 Canadians18 and is responsible for 9 per cent of all deaths in Canada19 representing an equal prevalence of death from breast, colorectal,
prostate and pancreatic cancer combined22.

DORVAL, QC, Aug. 30, 2014 /CNW/ - Today at the European Society of
Cardiology congress and published simultaneously in the New England
Journal of Medicine, Novartis Pharmaceuticals Canada Inc. revealed, in
the largest heart failure study to date,1,5 that its investigational heart failure medicine, LCZ696, was superior to
the ACE-inhibitor enalapril on key endpoints. In PARADIGM-HF, patients
with heart failure and reduced ejection fraction (HF-REF) who were
given LCZ696 were more likely to remain alive and have less
re-hospitalization for heart failure than those given the ACE-inhibitor
enalapril1. Patients received LCZ696 or enalapril combined with the current best
treatment regimen for heart failure treatment. The safety and efficacy
of LCZ696 is still under investigation and market authorization has not
yet been obtained in Canada.

"The results of the PARADIGM study showed a reduction in
hospitalizations for heart failure, a reduction in cardiovascular
mortality and a reduction in total mortality when added to optimal
therapy. It also improved the quality of life of patients in the
trial," said cardiologist Dr. Jean-Lucien Rouleau of the Montreal Heart
Institute, a member of the PARADIGM-HF executive committee and a
co-author of the study article. "These results are important given that
one in every five or six of the Canadian population, over the age of 40
will experience heart failure. The PARADIGM-HF results are promising
and may have a major impact in the way we manage heart failure in the
future."

The PARADIGM-HF results showed that the investigational treatmentLCZ696, when added to current optimal care and compared to adding the
ACE-inhibitor enalapril to optimal care: 1

reduced the risk of death from cardiovascular causes by 20% (p=0.00004)

reduced heart failure hospitalizations by 21% (p=0.00004)

reduced the risk of all-cause mortality by 16% (p=0.0005)

Overall there was a 20% risk reduction on the primary endpoint, a
composite measure of CV death or heart failure hospitalization
(p=0.0000002)1.

"Given the increasing prevalence, the high hospitalization rate and
mortality in heart failure, there is a great need for new treatment
alternatives in Canada and around the world'' said Dr. Jean Godin,
Chief Scientific Officer and Vice-President, Clinical and Regulatory
Affairs of Novartis Pharmaceuticals Canada Inc. "These results show the
importance of pursuing research and development efforts to further
improve the health outcomes of patients affected by this condition."

About LCZ696 in heart failure
LCZ696, a twice-a-day tablet being investigated for heart failure, has a
unique mode of action which is thought to reduce the strain on the
failing heart5,6,7. It acts to enhance the protective neurohormonal systems of the heart
(NP system) while simultaneously suppressing the RAAS system5,7.

Analysis of the safety data from PARADIGM-HF showed side effects were
manageable in the study1. Fewer patients on LCZ696 discontinued study medication for any adverse
event compared to those on enalapril (10.7% vs 12.3%, respectively,
p=0.03). The LCZ696 group had more hypotension and non-serious
angioedema but less renal impairment, hyperkalemia and cough than the
enalapril group.

Novartis plans to pursue filings for marketing authorizations in
different jurisdictions around the world starting late in 2014 and
continuing in 2015.

About the PARADIGM-HF study
PARADIGM-HF was a randomized, double-blind, phase III study evaluating
the efficacy and safety profile of LCZ696 versus enalapril (a widely
studied ACE inhibitor) in 8,442 patients with HF-REF5,12. The baseline characteristics showed that the patients enrolled were
typical HF-REF patients with NYHA Class II-IV heart failure.
PARADIGM-HF was specifically designed to see if LCZ696 could decrease
CV mortality by at least 15% vs. enalapril5. Patients received LCZ696 or enalapril in addition to the current best
treatment regimen. The primary endpoint was a composite of time to
first occurrence of either cardiovascular death or heart failure
hospitalization, and was the largest heart failure study done to date5.

Secondary endpoints included change in the clinical summary score for
heart failure symptoms and physical limitations (as assessed by Kansas
City Cardiomyopathy Questionnaire) at 8 months; time to all-cause
mortality; time to new onset atrial fibrillation; and time to
occurrence of renal dysfunction5. PARADIGM-HF was initiated in December 2009 and in March 2014 the Data
Monitoring Committee (DMC) confirmed that patients given LCZ696 were
significantly less likely to die from CV causes, leading to the trial
being stopped early13. The DMC also confirmed the primary endpoint had been met.

About heart failure in Canada
Heart failure is a debilitating and potentially life-threatening disease
in which the heart cannot pump enough blood around the body. Symptoms
such as breathlessness, fatigue and fluid retention can appear slowly
and worsen over time, significantly impacting quality of life3,14. More than 600,000 Canadians have heart failure18 and it is responsible for 9 per cent of all deaths in Canada19 which is almost equal to the number of deaths from breast, colorectal,
prostate and pancreatic cancer combined.22 It is the second leading cause of hospitalization in Canada for
patients over 6520 and resulted in estimated direct costs of $1.18 billion in 2010.21

Disclaimer
The foregoing release contains forward-looking statements that can be
identified by words such as "will, aim, look forward" or similar terms,
or by express or implied discussions regarding potential marketing
approvals for LCZ696, or regarding potential future revenues from
LCZ696. You should not place undue reliance on these statements. Such
forward-looking statements are based on the current beliefs and
expectations of management regarding future events, and are subject to
significant known and unknown risks and uncertainties. Should one or
more of these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from
those set forth in the forward-looking statements. There can be no
guarantee that LCZ696 will be submitted or approved for any additional
indications or labeling in any market, or at any particular time. Nor
can there be any guarantee that LCZ696 will receive regulatory approval
or be commercially successful in the future. In particular,
management's expectations regarding LCZ696 could be affected by, among
other things, the uncertainties inherent in research and development,
including unexpected clinical trial results and additional analysis of
existing clinical data; unexpected regulatory actions or delays or
government regulation generally; the company's ability to obtain or
maintain proprietary intellectual property protection; general economic
and industry conditions; global trends toward health care cost
containment, including ongoing pricing pressures; unexpected
manufacturing issues, and other risks and factors referred to in
Novartis AG's current Form 20-F on file with the US Securities and
Exchange Commission. Novartis Pharmaceuticals Canada Inc.is providing
the information in this press release as of this date and does not
undertake any obligation to update any forward-looking statements
contained in this press release as a result of new information, future
events or otherwise.

About Novartis
Novartis Pharmaceuticals Canada Inc., a leader in the healthcare field,
is committed to the discovery, development and marketing of innovative
products to improve the well-being of all Canadians. In 2013, the
company invested close to $100 million in research and development in
Canada. Novartis Pharmaceuticals Canada Inc. employs more than 600
people in Canada. For further information, please consult www.novartis.ca. Novartis Pharmaceuticals Canada Inc. is a subsidiary of Novartis AG,
which provides innovative healthcare solutions that address the
evolving needs of patients and societies. Headquartered in Basel,
Switzerland, Novartis Group of Companies offers a diversified portfolio
to best meet these needs: innovative medicines, eye care, cost-saving
generic pharmaceuticals, preventive vaccines and diagnostic tools,
over-the-counter and animal health products. Novartis is the only
global company with leading positions in these areas. In 2013, the
Group achieved net sales of USD 57.9 billion, while R&D throughout the
Group amounted to approximately USD 9.9 billion (USD 9.6 billion
excluding impairment and amortization charges). Novartis Group
companies employ approximately 136,000 full-time-equivalent associates
and operate in more than 140 countries around the world. For more
information, please visit www.novartis.com .

Blais C, et al. Assessing the burden of hospitalized and community-care
heart failure in Canada. Can J Cardiol. 2014 Mar; 30(3):352-8 for 3.5%
prevalence rate in population 40+ (p.356) in five major provinces of
Canada and applying that rate to Canadian population 40+ (17.687
million) from Statistics Canada, Population by sex and age group, 2013,
accessed at: http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/demo10a-eng.htm